Ten of the 19 companies included in the calculation of the SOFIX blue-chip index of the Bulgarian Stock Exchange (BSE) posted year on year increase in profit for the first half of 2008, a check-up conducted by Profit.bg shows. Two of the companies posted losses for the first six months of the year and seven others booked a year on year decline in profit for the period. The average year on year increase in the earnings of the SOFIX components stood at 26% in the first half of the year. This marks a slowdown compared to the 43% year on year rise posted for the year-ago period. Neochim's profit, which went up by 382.57% in the first half of the year, contribute greatly to the results, even though the company has a relatively low eight in the index. Monbat, which has a relatively heavy weight in the index, booked a 124.8-percent year on year rise in profit for the first six month of the year. Except for Holding Roads (22.9%), Monbat and Neochim are the two companies with the highest increase in stock prices over the last year – 6.19% and 6.13%, respectively. Corporate Commercial Bank was the only other company that managed to post an increase in stock price over the last year. The stock of the bank has appreciated by nearly 3% over the period. A total of 15 of the 19 companies included in the calculation of the SOFIX posted stock price declines in the last year. Twelve of them saw their stocks decline more than the index over the period. The stocks of Albena, Euroins, Kaolin, Lead&Zinc Complex, Orgachim, First Investment Bank and Central Cooperative Bank have depreciated by more than 50% in the last year. Rousse-based paint and varnish maker Orgachim posted the highest decline in profit amongst SOFIX's components. The company booked a 52.3% year on year decline in profit for the first six months of 2008, compared to a 509-percent year on year jump for the corresponding period of 2007. The fact that one-off gains are included in the financial results of the companies for the past year should also be taken into consideration: Company Profit growth Q2 2008 Profit growth Q2 2007 Stock price change РЕ Albena n.a n.a. -50,21% 15,38 Elana REIT n.a n.a. -18,47% 2,28 Euroins -86,40% 200,48% -60,14% 13,43 Industrial Holding Bulgaria 71,70% -32,42% -39,88% 13,08 Kaolin -55,75% 132,07% -55,21%% 15,71 M+S Hydraulic 18,71% 30,00% -43,43% 18,78 Monbat 124,80% 80,00% 6,19% 19,99 Neochim 382,57% 28,70% 6,13% 5,98 Lead&Zinc Complex -86,72% 105,40% -64,75% 165,82 Orgachim -52,29% 508,65% -64,76% 27,01 Sopharma -43,50% 25,00% -46,82% 18,16 Sparky Eltos 88,00% n.a. -56,25 10,31 Bulgarian American Credit Bank 25,40% 62,30% -25,33% 14,22 Corporate Commercial Bank 83,50% n.a. 2,96% 23,48 First Investment Bank 24,40% 62,50% -53,36% 12,81 Central Cooperative Bank -26,00% 110,00% -63,76% 15,45 Toplivo 90,00% -64,19% -42,83% 10,38 Chimimport 8,02% n.a. -43,50% 8,62 Holding Roads -68,72% n.a. 22,90% 30,38 SOFIX -40,30% 12,61 Average 0,26% 0,43% Source: Profit.bg
Tuesday, September 16, 2008
Bulgaria Boasts Highest Real Estate Price Growth Globally in Q2
Bulgaria retained its number one spot in the Knight Frank Global House Price Index with a 32.3-percent year on year growth in real estate property prices in the second quarter of 2008. Real estate property prices in the country marked a 32.3% year on year increase in the first quarter of the year. Global house price inflation continues to slow, with annual growth standing at 4.8% in the second quarter of 2008, down from 6.1% in the previous quarter, Knight Frank data show. Prices are now falling in almost half the markets listed in the Knight Frank Global House Price Index. Nevertheless growth rates in double figures are still being recorded in eight markets - Bulgaria, Slovakia, Russia, the Czech Republic, Hong Kong, Singapore, Cyprus and Colombia. The economies of central and south-eastern Europe appear to be the strongest performers, while northern Europe (including the Baltic States), together with the United States, are suffering the most. The Knight Frank Global House Price Index shows that global house price inflation is continuing to fall back, with much of continental Europe now seeing low or negative growth, according to Nick Barnes head of international research at Knight Frank. Bulgaria is at the head of this list, where values have grown at 32.3% over the past year, and have now risen by 68% over the past two years. Admittedly this occurred from a low base, but demand from international investors and domestic economic growth remain strong, although there are fears of oversupply, particularly in the resort locations. Strong performance in Slovakia and the Czech Republic is also driven by robust economic growth. The rapidly depreciating housing markets of the Baltic States – led by Latvia, where prices fell by 24.1% over the past year, demonstrate that rising inflation and mortgage costs are real risks for the emerging economies of Europe. However, housing markets in countries such as Spain, Denmark, the UK and Ireland are all being severely challenged by the global credit squeeze. Country Y/Y % change in Q2 Y/Y % change in Q1 Rank Q2 2007 Bulgaria 32,2 27,1 3 Slovakia 31,2 20,5 5 Russia 26,5 53,7 1 Czech Republic 25,4 20,5 5 Hong Kong 25,1 - - Singapore 16,3 25,2 4 Cyprus 12,9 8 20 Colombia 12,5 12,8 10 Iceland 9,6 9,6 17 China 9,2 7,1 22 Australia 9 10,1 16 Belgium 6,9 11 12 Croatia 5,8 6,9 24 Austria 5,4 7,7 21 Italy 5,4 5,4 28 Canada 4,8 9,1 18 Indonesia 4,4 7 23 Sweden 4,3 10,3 14 Serbia 3,8 0,2 36 South Africa 3,8 15,5 7 France 3,2 6,8 25 Finland 2,8 6,5 26 Spain 2,4 5,8 27 Malaysia 2,2 11 12 Greece 1,7 4,2 29 Източник: Profit.bg
